The Lemon-bellied Flyrobin is distributed in north and northeastern Australia and in Papua New Guinea. It is found in tropical forest and woodland, eucalypt forest and mangroves.

Photos 1 and 2 show the race M. f. flavissima from Queensland which has richer yellow underparts, a greyer breast area and a less distinct supercilium than the nominate race of Northern Territory shown in photos 3 and 4. The race M. f. tormenti found in the north of Western Australia has buffy-grey underparts and no lemon. It is classified by the HBW and Birdlife International checklist as Kimberley Flyrobin M. tormenti.